Name: The formula to compute direct material quantity variance is to calculate t

Question

Name: The formula to compute direct material quantity variance is to calculate the difference a. actual costs standard costs b. standard costs- actual costs c. (actual quantity* standard price) - standard costs d. actual costs - (standard price * standard costs) 14. The following data relate to direct materials costs for November: Actual costs Standard costs 4,700 pounds at $5.40 4,500 pounds at $6.20 15. What is the direct materials price variance? a. $3,600 favorable b. $160 favorable c. $3,760 favorable d. $3,600 unfavorable 16. What is the direct materials quantity variance? a. $3,600 favorable b. $1,240 favorable c. $3,600 favorable d. $1,240 unfavorable The following data relate to direct labor costs for February: Actual costs Standard costs 7,700 hours at $14.00 7,000 hours at $16.00 What is the direct labor time variance? a. $7,700 favorable b. $7,700 unfavorable c. $11,200 unfavorable d. $11,200 favorable 17. What is the direct labor rate variance? a. $14,000 favorable b. $14,000 unfavorable c. $15,400 favorable d. $15,400 unfavorable 18.

Explanation / Answer

Q16 Answer is d. $ 1240 unfav Explanation: Material Qty variancec: Styd price (Std quantity-Acttual Quantity) 6.20 (4500-4700)= $ 1240 Unfav Q17. Answer is c. $ 11200 unfav Explanaation: Labou time variancce: Std rate (Std hours-Actual hours) 16 (7000-7700) = $ 11200 Unfav Q18. Answer is C. $ 15400 Fav Explanation: labour rate variance: Actual hours (Std rate-Actual rate) 7700 (16-14) = $ 15400 Fav Q19. Answer is A.    Material Dr.   $ 30000       Material price Variannce Dr. 6000                Accounts payable                      $ 36,000 Q20. Answer is a. used to indicate where changes in technology and machinery needs to be made. Q21. Answer is b. Price variance is controlled by purchasing deptt and quesntity used is controlled by Production deptt. Q22. Answer is d. Vraiances brings attention to discrepancies in the budget and required the manager to revise the budgetcloser to actual Q23. Answer is C. Increased material cost per unit.

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